A statistically derived adjustment should still be tested against:
Correct Answer
B) Relevant market evidence and the model’s applicability
Test statistical adjustment estimates for applicable data, specification, model limitations and consistency with relevant market evidence. A client’s desired result cannot validate the estimate; assessment ratios or construction costs alone do not prove a market adjustment.
Why This Is the Correct Answer
Test statistical adjustment estimates for applicable data, specification, model limitations and consistency with relevant market evidence. A client’s desired result cannot validate the estimate; assessment ratios or construction costs alone do not prove a market adjustment.
More Sales Comparison Questions
Supported adjustments are: non-market financing $10,000, GLA $36/sf, garage $3,500 per car, pool/spa $12,500. A comparable identical to the 2,800 sf subject sold for $267,000 with non-market financing. What is its adjusted price?
Using GLA $36/sf and non-market financing $10,000: a 3,100 sf comparable sold for $277,000 with non-market financing; the subject has 2,800 sf. Bath count differences are not adjusted. What is the adjusted price?
Using garage $3,500 per car and pool/spa $12,500: a comparable with a 2-car garage and a pool/spa sold for $268,000. The subject has a 3-car garage and no pool. What is the adjusted price?
Using GLA $36/sf, garage $3,500 per car and pool/spa $12,500: a 2,600 sf comparable with a 2-car garage and a pool/spa sold for $264,000. The subject is 2,800 sf with a 3-car garage and no pool. What is the adjusted price?
In a neighborhood with declining values and marketing times over six months, what must Fannie Mae lenders confirm about the sales comparison analysis?
A house is a 4,000 square foot home in an area of 2,000 square foot homes. How must the appraiser treat this over-improvement in the sales comparison grid?
According to the Interagency Appraisal and Evaluation Guidelines, which items should an appraisal’s market conditions discussion include?
A comparable listed at $420,000 and sold for $399,000. What sale-to-list price ratio (sale price ÷ list price) does this indicate?
An appraiser wants to describe the neighborhood boundaries in a Fannie Mae report. Which approach is acceptable?
Which of these is listed by Fannie Mae as a sales or financing concession?
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Previous Question
Two physically similar homes sell three weeks apart for $372,000 and $360,000. The first has a corner lot, the second an interior lot. Financing, concessions and market movement have not been verified. Before treating their $12,000 difference as a corner-lot adjustment, what is needed?
Next Question
Four verified park-proximity pairs indicate $7,200, $6,800, $8,100 and $7,900. Recent listings suggest weaker buyer preference. Before reducing the mean by five percent, what must the appraiser establish?